Housing Supply Overview
We are firmly within summer during an economically strong year in the U.S., thus real estate activity is busy. There are still generally more buyers than sellers in most price and housing style categories, so prices will continue to rise until that situation changes. For the 12-month period spanning July 2017 through June 2018, Pending Sales in the Western Upstate region were down 2.7 percent overall. The price range with the largest gain in sales was the $150,001 to $200,000 range, where they increased 8.3 percent.
The overall Median Sales Price was up 6.3 percent to $170,000. The property type with the largest price gain was the Condos segment, where prices increased 8.6 percent to $126,000. The price range that tended to sell the quickest was the $100,001 to $150,000 range at 69 days; the price range that tended to sell the slowest was the $300,001 and Above range at 120 days.
Market-wide, inventory levels were down 0.6 percent. The property type that gained the most inventory was the Condos segment, where it increased 5.5 percent. That amounts to 5.0 months supply for Single-Family homes and 5.4 months supply for Condos.
Housing markets across the nation are most assuredly active this summer, and buyer competition is manifesting itself into several quick sales above asking price. While the strength of the U.S. economy has helped purchase offers pile up, the Fed recently increased the federal funds rate by 0.25 percent, marking the second rate hike this year and seventh since late 2015. Although the 30-year mortgage rate did not increase, buyers often react by locking in at the current rate ahead of assumed higher rates later. When this happens, accelerated price increases are possible, causing further strain on affordability.
New Listings were down 8.8 percent to 664. Pending Sales decreased 38.3 percent to 306. Inventory shrank 0.6 percent to 2,140 units.
Prices moved higher as Median Sales Price was up 12.2 percent to $185,000. Days on Market increased 69.4 percent to 105 days. Months Supply of Inventory was up 2.0 percent to 5.1 months, indicating that supply increased relative to demand.
Inventory may be persistently lower in year-over-year comparisons, and home prices are still more likely to rise than not, but sales and new listings may finish the summer on the upswing. The housing supply outlook in several markets is beginning to show an increase in new construction and a move by builders away from overstocked rental units to new developments for sale. These are encouraging signs in an already healthy marketplace.
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